Thursday, 7 July 2011

FIVE journalists and newspaper executives suspected of involvement in the News of the World phone hacking scandal are expected to be arrested within days, with a lawyer involved in the late Princess Diana's inquest saying last night his phone had also been hacked.

Michael Mansfield - who represented the family of Diana's lover at the inquest into her death - said the revelation that journalists might have been trying to uncover stories about Diana from his messages was "particularly disturbing".

Amid a political and public outcry in Britain, News International - owned by News Corporation, parent company of The Australian - said yesterday that it was close to identifying who had authorised a private investigator to listen to messages on the phone of murdered schoolgirl Milly Dowler and people involved in other high-profile stories.

British Prime Minister David Cameron promised a public inquiry into the allegations. There could be one inquiry into the police handling of the original investigation and another into the actions of the media.

News Corporation chairman Rupert Murdoch gave his backing to Rebekah Brooks, former editor of News of the World and now chief executive of News International. Mr Murdoch described allegations that staff had hacked phones and paid police as "deplorable and unacceptable". He said the company would co-operate fully with the police in all investigations "and will continue to do so under Rebekah Brooks's leadership".

News International said that documents exonerated Ms Brooks from authorising the investigator to hack into Milly's mobile telephone, but refused to discuss the position of her former deputy at the paper, Andy Coulson, or any other person.

In a day of dramatic developments, British Chancellor George Osborne was told by Scotland Yard detectives that his name and home phone number appeared in notes kept by Glenn Mulcaire, the private investigator who worked for the News of the World. There was no suggestion that the phone of Mr Osborne, who was shadow chancellor at the time, had been hacked into. Families of victims of the July 7 London terror attacks, who have been told by police they may have been targeted by Mr Mulcaire, expressed outrage as the list of those who had been hacked grew. It was also claimed that phones owned by relatives of British soldiers killed in Iraq and Afghanistan could have been hacked by the News of the World.

Attorney-General Dominic Grieve said public inquiries would not begin until the completion of any prosecutions arising out of the police investigation, a timescale that could postpone them for years.

But the Press Complaints Commission said it would immediately begin a review of press regulation, including its own independence and the sanctions available. The watchdog also withdrew its 2009 report clearing News of the World of widespread phone hacking, adding that recent revelations "undermined assurances" it had received from News International.

British MPs demanded that the government block News Corporation's takeover of the BSkyB television station.

Mr Cameron resisted demands by MPs to halt the BSkyB bid, insisting the government had followed "absolutely to the letter" the correct legal process.

Police handling of the original investigation faces scrutiny by MPs next week. Andy Hayman, the former assistant commissioner in charge of that inquiry, who subsequently worked as a columnist for New International, and his then deputy were yesterday called to give more evidence about the investigation to the home affairs select committee.

Several companies withdrew their advertising from News of the World amid growing signs that